Wall Street Underwhelms as Earnings Take Center-Stage

Michael Teague |

Wall Street was lower by Wednesday’s closing bell, as recent worries about D.C. politics and Treasury spending gave way to earnings results from the recently-ended third quarter.

After yet another run of four consecutive record closes, The Standard & Poor’s 500 Index cooled off by 0.47 percent to 1,746.38, while the Dow Jones Industrial Average was 0.35 percent lower to 15,413.33, with the NASDAQ taking the biggest hit, a loss of 0.57 percent, closing at 3,907.07.

The only real success to speak of on the Dow was aerospace/defense titan Boeing (BA) , whose shares were up over 5 percent after the company reported a substantial jump in quarterly profits and raised guidance for the fourth quarter. Construction machinery producer Caterpillar Inc. (CAT) , offered up the diametrically opposite performance, however, after shares were over 6 percent off after coming up short of earnings expectations and slashing forecasts.

The S&P 500 meanwhile was pulled under by the number-six oil & gas services company FMC Technologies (FTI) , whose shares were off almost 9 percent by the close as the company missed on top and bottom  lines, despite its earnings statement showing significant year-over-year growth. The highest-volume losses were reserved for tech stocks, particularly those of semiconductor manufacturers such as Micron Technology (MU) , Broadcom Corp. (BRCM) , and Intel (INTC) . One of the few bright spots on the index was electronics firm Corning (GLW) , who ended the day 14 percent higher after releasing a strong Q3 earnings statement and announcing a joint venture with Samsung Electronics to produce LCD glass.

The NASDAQ saw the $2.17 billion REIT American Realty Capital Properties (ARCP) take the most heavily traded loss of the day, 2 percent, after announcing a merger with Cole Real Estate Investments (COLE) . The latter ended the day nearly 9 percent higher.

Semiconductors were also a big drag, however, with Cree Inc. (CREE) , Applied Materials (AMAT) , and Altera Corp. (ALTR) all ending the day on heavy losses. Diversified toy-manufacturer JAKKS Pacific, however, gained over 25 percent by the end of trading after cost-cutting measures saw the company’s Q3 earnings and revenue firmly ahead of estimates. Shares for drug manufacturer Amgen Inc. (AMGN) pared back about 0.50 percent of the previous day’s gains

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Companies

Symbol Name Price Change % Volume
GLW Corning Incorporated 24.88 0.30 1.22 11,903,525
INTC Intel Corporation 35.70 0.20 0.56 19,966,537
AMAT Applied Materials Inc. 32.71 0.20 0.62 10,131,405
AMGN Amgen Inc. 140.59 -0.60 -0.42 4,387,570
ALTR Altera Corp. n/a n/a n/a 0
BA Boeing Company (The) 155.39 1.25 0.81 2,928,370
BRCM Broadcom Corp. n/a n/a n/a 0
MU Micron Technology Inc. 20.66 0.22 1.08 36,257,456
CAT Caterpillar Inc. 96.27 -1.06 -1.09 3,861,626
CREE Cree Inc. 26.85 0.17 0.64 1,266,091
FTI FMC Technologies Inc. 35.90 0.00 0.00 5,718,278
AGXLY Agenix Ltd S/Adr n/a n/a n/a 0

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